The impact of the covid-19 on the industry's operation in 2020

Source: | Author:changxing | Published time: 1391 days ago | 1725 Views | Share:

Like other industries, the new coronary epidemic that began at the beginning of the year poses serious challenges to the operation of the refractory industry. Since the outbreak, industry associations and industry colleagues have resolutely implemented the spirit of General Secretary Xi Jinping’s important instructions, implemented the decision-making and deployment of the Party Central Committee, the State Council, the SASAC, the China Iron and Steel Industry Association and the local government, and the whole industry has made concerted efforts to prevent and control the outbreak. The barrier, while doing a good job in the scientific prevention and control of the epidemic, donated money and donations to help the city of Wuhan, Hubei and the local government fight the epidemic, and strive to ensure the operation of the industry's production and operation. According to the statistics of the association, the donation of donations and materials totals 43 million yuan .

The new coronary pneumonia epidemic also has a major impact on the operation of the industry. According to the survey results of the association and refractory window questionnaire survey, the impact of the epidemic on the industry are:

First, the resumption of production after the Spring Festival encountered logistics restrictions. One is that vehicles cannot be found at the beginning of the year, and many provinces restrict the entry of foreign vehicles and personnel. When the government has opened all the city nodes of the highway, but some regions still have blockades, refractory materials companies, especially refractory raw materials companies, are geographically distributed in In villages and towns, there are still difficulties in entering raw materials and exporting products.

The second is the increase in freight costs: when the complete supply chain of the entire industrial system is not fully operated, the refractory industry is also affected, and the logistics costs have increased significantly. In the case of the elimination of high-speed tolls, corporate freight rates have risen from 30% to 80% .

Third, the reutilization capacity utilization rate is low: At the end of February and early March, the apparent resumption rate of refractory companies is about 80%, but the overall capacity utilization rate is less than 50%. The main reason for unstarted enterprises is the failure to pass the local government's start of work approval. The lack of workers is not the main problem affecting the resumption of the refractory industry.

Despite the above difficulties, the entire industry has made concerted efforts to meet the supply of downstream industries such as steel and building materials, and there has been no situation where the supply of refractory materials has affected the production of downstream enterprises.

The impact of the domestic epidemic is temporary, but with the global expansion of the epidemic and the subsequent impact on the entire global economy, the impact of the epidemic on the global economy and the impact on the demand side of refractory materials are increasing. How big the impact is, it is not completely clear. However, the epidemic situation will inevitably affect industries such as steel and automobile consumption, and then the refractory industry. The changes in the market in the first quarter and the decline in the prices of some products have given clear signals. The impact of the epidemic on the refractory industry in 2020 cannot be underestimated.

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